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US Further Sanctions To Prevent Trading With Iran With Gold

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Now that Obama has gotten the election out of the way, he is free to concentrate his efforts on forcing Iran into a war. Turkey is now in the sights of the US as it has recently gotten around sanctions against Iran by purchasing oil using gold. Now the US Senate is considering more sanctions to prevent Iran from trading.

 

Currency wars are set to intensify as the US Senate is considering new sanctions against Iran that would prevent Iran getting paid for its natural resource exports in gold bullion.

The new sanctions aimed at reducing global trade with Iran in the energy, shipping and precious metals sectors may soon be considered by the U.S. Senate as part of an annual defense policy bill, senators and aides said on Tuesday, according to Reuters.

The sanctions would end “Turkey’s game of gold for natural gas,” Reuters reported a senior Senate aide as saying, referring to reports that Turkey has been paying for natural gas with gold due to sanctions rules.

The legislation “would bring economic sanctions on Iran near de facto trade embargo levels with the hope of speeding up the date by which Iran’s economy will collapse,” the aide said.

Last week Turkish Deputy Prime Minister Ali Babacan has revealed a critical detail about a widely discussed Turkey-Iran gold trade boom, disclosing that the Islamic republic was exporting gas to Turkey in exchange for payment in gold bullion. 

It is also reported that Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases, the deputy prime minister said at midnight Nov. 22 during a parliamentary session. 

Iran cannot transfer monetary payments to Iran in U.S. dollars due to U.S sanctions against the country’s alleged nuclear weapons program.

Iran has been forced to shun the international financial system and the petrodollar as means of payment and turn to the international gold market to ensure it gets paid for its natural resources in order to prevent absolute economic collapse.

The law of unintended consequences may apply here and should the Iranian currency and economy collapse there is likely to be a war with Israel and turbulence in the Middle East akin to, if not worse, than that seen in the 1970’s.

 

Source: ZeroHedge

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Turkish PM Calls For Gold Standard

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The Turkish PM, Erdogan has called for a return to the Gold Standard in a scathing attack on the IMF. Interesting that the call for the use of gold as money is becoming more mainstream.

Prime Minister Recep Tayyip Erdoğan states that instead of ruling the world under the pressure of the dollar the IMF should switch to using gold.

During his stay in Indonesia, Prime Minister Recep Tayyip Erdoğan brought up an interesting suggestion for the International Monetary Fund.

Stating that although IMF assistance may appear to be a prescription for some nations, in fact quite the opposite, the fund has often caused serious problems for countries in trouble, Erdoğan asks why it is that the fund uses dollars instead of gold.

Expressing that he doesn’t feel it is right for the IMF to act according to one nation’s currency, Erdoğan states, “The IMF extends aid on a who, where, how and on what conditions bases. For example, if the IMF is under the influence of any single currency then what, are they going rule the world based on the exchange rates of that particular currency?

Why do we not switch then to a monetary unit such as gold, which is at the very least an international constant and indicator which has maintained its honor throughout history. This is something to think about.”

IT IS IMPERATIVE THE IMF AND OECD CHANGE

Explaining that Turkey had to pay a heavy price for the agreement they made with the IMF, Erdoğan stated, “We have not made a stand-by agreement for the past three periods. In April, we will have zeroed out our debt completely and we have no intentions of working with the IMF again.”

Prime Minister Erdoğan went on to state: “One would hope that the IMF would help countries in trouble, however at present this is not the case. This is what we need to achieve.”

Erdoğan also said he believed the United Nations, the International Monetary Fund, the Organization for Security and Co-operation n Europe (OSCE) and the Organization for Co-operation and Development (OECD) need to all undergo a reform.

Source: Sabah

EU To Approve Influx Of Turkish, Algerian, Tunisian, Moroccan Workers

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The Slog has released information of a decision soon to be announced by the EU, that Turkey first all will be allowed access to EU labour markets and social welfare rights, followed by Tunisia, Morocco, Algeria, Croatia, Macedonia and Israel. This also appears to have social welfare implications to workers currently in the EU. As the Turkish economy is about to go down the toilet( built on cheap credit, ring a bell), there would massive influx of workers. Are you taking note Germany ? 😉

The Slog has obtained sight of an official Brussels Commission document which, while not confidential, has not as far as I can tell been the subject of MSM coverage, or indeed any vote at all among MEPs. Although dated March 30th 2012 as a ‘proposal for a decision’, I can reveal that the decision has been approved and is already going ahead. It is to grant Turkish citizens the same residency and labour rights in Europe as existing EU citizens.

The unelected European Commission has repealed the 1980 Ankara Accord between what was then the EEC and Turkey, and replaced it with a major change to the rights of Turkish citizens in the EU. The proposal was presented to a working group (we know not who) eleven days ago on March 30th, and approved by that same anonymous gathering. It specifically adds that ‘A first package with similar proposals in respect of Algeria, Morocco, Tunisia, Croatia, the former Yugoslav Republic of Macedonia and Israel was adopted by the Council in October 2010′ and that this too will be updated to bring it into line with the Turkish proposals.

The following is in relation to access of existing workers to social welfare.

‘this [Turkish accord] will facilitate the application of these provisions by Member States’ social security institutions. This Decision shall apply:

 (a) to Turkish workers who are or have been legally employed in the territory of a

Member State and who are or have been subject to the legislation of one or more

Member States, and their survivors;

 (b) to the members of the family of workers referred to in point (a) provided that these

family members are or have been legally resident with the worker concerned while

the worker is employed in a Member State;

To make this decision at a time when the EU countries are struggling economically makes no sense, especially when an influx of migrants looking for work competing with rising unemployment would create huge tension. The Slog goes on to criticize the decision.

 I do not employ the phrase  ‘ lunatic Commission decisions’ above lightly. Any unelected and yet sovereign body happy to take on the welfare needs of these workers at a time of euro meltdown must be deranged at least. To enumerate the idiocy involved here:

1. Turkey’s economy under the closet Islamist Recep Erdogan is about to go bang. Enter millions of jobless Turks stage left.

2. Turkey has already threatened to annex Cyprus…both parts of which represent an existing EU member.

3. Algeria, Morocco, and Tunisia are all recently destablised States with growing Islamist power in their politics.

4. Um, none of them – including Israel – are in Europe. Small point, but worth bringing up I feel.

5. All four of the above States are anti-Israel in the most bellicose manner.

6. Germany has just passed a law denying these very rights to unemployed ClubMed citizens. How are they now going to feel in the light of this new law? How is Gunter Grass going to feel, having just been banned by the Israeli Government?

7. The anti-Islamist security ramifications of the new law would be horrendous.

 

 

 

Turkish Central Bank Backs Gold

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Last week we had Helicopter Ben attack the gold standard and now we have the Turkish Central Bank announce  that it is doubling the amount of gold that lenders can hold in reserves. Its looking bullish for gold long-term to see both moves recently.

The Turkish central bank has doubled the amount of gold that lenders can hold in reserves (as opposed to paper money – Lira) as part of their reserve requirement changes. As the WSJ reports, this shift from 10% to 20% means that Turkish banks can use their shiny yellow metal as fungible money reserves against foreign currency deposits. This move follows closely on the heels of our comments on last week’s ‘gold transfer’ efforts in Turkey to unleash some of the country’s vast personal holdings of Gold. This effort to draw down on the nation’s individual gold reserves – the traditional form of savings in Turkey – is part of Ankara’s efforts to reduce a finance gap that is currently around 10% of GDP but more importantly it should serve as a lesson reality-check for Bernanke that gold is money and in the words of a 70-year-old housewife “In an emergency, I can convert [gold] to cash and I don’t have to wait for the bank to say the asset has matured.” It would seem a better store of value than the Lira over the past decade or two and we suspect incentives will have to rise considerably to ‘help’ the people part with their savings-gold.

Source: ZeroHedge

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